Explain the Concept of M&M's Homemade Leverage and Why It

question 32

Essay

Explain the concept of M&M's homemade leverage and why it is not equivalent to a firm's debt.

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Definitions:

Flat

Lacking in vivacity or interest; without marked variation in emotional or dynamic level.

Blunted

Lacking in force, intensity, or sharpness; often used to describe diminished emotional responses or reactions.

Exaggerated

Describes something that is represented as greater than is true or reasonable; overstated or embellished.

Establish Trust

Establishing trust involves creating a reliable, dependable, and safe environment or relationship where confidence in one another can be built.